SOURCE: Caneum

March 07, 2006 07:20 ET

Caneum Chairman Issues Letter to Shareholders

NEWPORT BEACH, CA -- (MARKET WIRE) -- March 7, 2006 --


Dear Shareholders and Friends,

We are pleased to have reported another quarter of record performance. Closing the fourth quarter of 2005, Caneum (OTC BB: CANM) recorded its 11th consecutive quarter of sequential revenue growth, its 5th consecutive quarter of sequential loss reduction and its 3rd consecutive year of sequential triple digit revenue growth. As we navigate the first quarter and prepare for the remainder of the current fiscal year, we intend to continue building a strong business foundation for favorable long-term stock price performance and to achieve a position of operational profitability from our core business process and information technology outsourcing business during calendar year 2006.

We remain optimistic that our past successes and investments will continue paying dividends for ongoing growth initiatives rolling forward and that our existing strategy will yield profitability later this year. Since our last formal update in August, we have been extremely active in executing our business model and today I would like to highlight some key updates with each of you. As always, our entire team thanks you for your continued interest and support as we continue to ramp the business, implement our vision and expand shareholder value on your behalf. With that said, here are just some of the reasons that we remain so enthusiastic for the quarters and years ahead.

First, on February 15th we announced that we expected to see full year 2005 revenues to have increased between 290% -310% from $534,752 in 2004 to a range of $2,100,000 to $2,200,000 in 2005 (http://biz.yahoo.com/iw/060215/0109943.html). Separately, we now expect that 2006 organic revenues will increase between 100% -150% from 2005 to a range of $4,200,000 to $5,000,000 in 2006 (http://biz.yahoo.com/iw/060301/0111510.html).

Second, on January 5th we announced the appointment of Mr. Roger Goulette as Chairman of our company's Advisory Board (http://biz.yahoo.com/iw/060105/0105360.html). Mr. Goulette is a former Ernst & Young executive with more than 30 years of practical experience in the professional services and consulting industries and has an MBA in Finance from Northwestern University. We expect him to be an important contributor to our sales and business development activities, especially as they relate to new and existing growth initiatives tied to organic growth, mergers and acquisitions.

Third, in the last 90 days we announced winning, extending or renewing contracts with approximately 15 customers and now have a deeper and broader sales pipeline than at any other time in our history. Recent customer announcements have included public companies such as DIRECTV, Countrywide Financial Corporation, Panasonic, Innofone, Claritas and Trycera Financial, and private companies such as Interwest Capital, Vinculum Communications, ReadyLinks, IdeaFit, RingCentral, Morningside Partners and Rutgers Sports.

Fourth, on December 12th we announced a new partnership with ClairMail to expand our outsourcing offerings to include a remote software application product for enterprise customers, the first such product that we've taken to market (http://biz.yahoo.com/bw/051212/20051212005819.html?.v=1). The ClairMail product effectively transforms messaging into an access technology and enables instant one-click access to both public and enterprise applications and services from any mobile device such as a Treo, Blackberry or similar personal digital assistant (PDA). We are very excited about this new relationship because it will not only afford us an opportunity to sell higher margin software products to new customers, but it will also allow us to increase cross selling opportunities to both new and existing customers alike. The ClairMail product offering has recently received rave reviews from InfoWorld Magazine in its February 9th online product review and based upon the initial customer responses we've received since our launch, we are very optimistic that this may soon provide a meaningful new revenue source for our business ("ClairMail Makes Mobile App Access as Easy as E-mail", Mike Heck, http://www.infoworld.com/article/06/02/09/74977_07TCclairmail_1.html).

Fifth, and through today, Caneum has successfully raised approximately $575,000 in new financing via two private placements and option exercises by insiders over the past two quarters. With more than $500,000 of this total coming directly from directors, officers, advisors and insiders, this represents our collective confidence in the Company's future.

Sixth, we continue to pursue acquisition opportunities which will be accretive to our core outsourcing business. In July 2005 we successfully closed an asset purchase agreement with Jalva Media, Inc., to acquire certain customer contracts as a means of supplementing our investor relations centric organic business process outsourcing line of business. Since consummating this acquisition, we have successfully grown the underlying transcription offering and have successfully added both new customers and business in each of the past 2 quarters. In addition, we continue to evaluate other acquisition opportunities as they present themselves in order to broaden our core capabilities, expand our customer base and supplement our organic growth. All of these activities are at various points in the evaluation and negotiation process and will be shared with you should we consummate any of the transactions successfully.

Seventh, we continue to pursue numerous investor relations programs and activities as a means of sharing Caneum's message with as wide an audience as possible. Recent press and media interviews have included CEOcast, MoneyTV, Wall Street Transcript and Wall Street Reporter, amongst others. In addition, we continue to participate in road shows for institutional funds, broker-dealers and high net worth investors, and have also participated in formal investor conferences such as the Southern California Investment Association's National Investment Conference (http://biz.yahoo.com/iw/050923/096078.html). Separately, we continue to participate in technology and industry trade shows such as the 2006 International Consumer Electronics Show (CES) in Las Vegas, Nevada, where both the undersigned and our Vice Chairman presented industry perspectives on "the next generation Internet" (http://biz.yahoo.com/iw/051222/0104758.html). In parallel, and in the last 120 days, we have enjoyed new institutional research coverage that was initiated on Caneum by Taglich Brothers (http://www.taglichbrothers.com/equityuniverse/companies/caneum/caneum.asp) and formal IR / PR coverage and profiles that were initiated on Caneum by StockMarketNewsAlert, ShazamStocks, AllPennyStocks and OTCPicks, amongst others.

Hopefully you will agree that we have made significant progress toward the growth and stability of the Company, and are well positioned to take advantage of the worldwide demand for outsourcing products and services. We thank you for your interest and support, and we appreciate your ongoing commitment as we execute our operational and acquisition models rolling forward.

As always, please contact us with any questions you may have, and please consult our website for current information on our continuing progress and recent developments (www.caneum.com). Alternatively, please consult the EDGAR database on the SEC's website for complete details related to all of our public filings (www.sec.gov). If you have not already done so, please forward your email address to our offices so that we may facilitate keeping you up to date in the future on all communications and thanks again from our entire management team.

Sincerely,

Alan S. Knitowski

Alan S. Knitowski
Chairman
Caneum, Inc.

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